NBS retains key policy rate at 6.5 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to keep the key policy rate on hold at 6.50 pct.

The rates on deposit (5.25 pct) and lending facilities (7.75 pct) also remained unchanged, the NBS said in a statement.

"The Board’s decision was motivated by further easing of global inflationary pressures, the established downward trajectory of inflation at home and its expected movement within the target band over the monetary policy horizon. Moreover, monetary conditions in the past period were tightened by means of the main instrument - the interest rate, and in September by increasing the required reserve ratio, with the full effects of these measures yet to play out," the central bank also said.